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First Time Buyer Stamp Duty (SDLT) Relief

A first time buyer is defined as someone who has never bought or owned land or property in the UK or indeed the world. Currently, first time buyers are not applicable for any extra stamp duty relief.

Up until 24th March 2012 first time buyers did not have to pay stamp duty on property up to £250,000, but this relief has now ended. If you buy a property up to £125,001 you will not have to pay stamp duty land tax, but this relief is valid whether you are a first time buyer or not.

Stamp Duty Land Tax Thresholds

Being aware of the thresholds of stamp duty could be useful in saving you thousands of pounds in stamp duty land tax.

Some first time buyers are not aware that unlike income tax stamp duty land tax is not cumulative. What this means is that if you purchased a property at £250,000 you would pay £2,500 in tax, but if you purchased a property at £250,001 you would pay £7,500.03. As you can see offering £1 more on a property could cost you thousands of pounds in tax.

Stamp Duty Land Tax Thresholds | Table

Purchase Price of Residential Property

Rate of SDLT (percentage of total purchase price)

£0 - £125,000

0%

£125,001 - £250,000

1%

£250,001 - £500,000

3%

£500,001 - £1 million

4%

£1,000,001 - £2,000,000

5%

£2,000,001 or more

7%

Stamp Duty Land Tax Relief

Even though you might not receive any stamp duty relief for being a first time buyer perhaps you are applicable for another kind of stamp duty relief.

Disadvantaged Areas Relief

Disadvantaged Areas Relief applies to residential property located in an area the government has deemed as “disadvantaged”. The threshold in these cases is increased to £150,000.

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